This transaction was a milestone for us because it meant that in spite of the financial crisis we were able to secure long-term financing for our activities on a growth market.
In 2009, Olam International was looking to invest in equipment for a new manufacturing facility in Vietnam. Olam's choice had settled on GEA Process Engineering A/S in Søborg, Denmark as the supplier of a plant for manufacturing spray-dried and freeze-dried instant coffee.
However, the financial crisis made it difficult for Olam to secure the financing it needed to buy the equipment.
“Owing to the lack of liquidity in the financial market in February 2009 it would in all probability have been impossible to secure financing with a repayment term beyond 2-3 years for Olam,” says Antero Ranta from Olam’s bank, ANZ Structured Asset and Export Finance, in Singapore.
GEA Process Engineering specialises in the development, design and manufacture of equipment for industrial drying and was keen to land the order from Olam, which is a global leader in agricultural products and food ingredients with activities in a number of countries.